Areas of Expertise

Horizon had acquired unique expertise in providing services to the companies in the energy sector. Since 1996, Horizon has been consulting OAO Gazprom and its affiliate companies on financial and corporate issues in their interactions with RAO UES of Russia, municipal and federal authorities, as well as consumers, creditors and investors.

Gas

In the framework of its cooperation with Gazprom, Horizon succeeded in completing a task that many believed to be impossible. Through the implementation of a plan, with Horizon playing the key role in the process, an organized market of OAO Gazprom's shares was established. As a result, in 1997, Gazprom's market capitalization reached a level that made it possible for the company to make the list of the world's largest corporations. With Horizon's participation, Gazprom launched its ADR program. Providing top-quality service and operating within a very short time frame, Horizon managed to meet another major challenge: making a first Russian company ready for a listing on the London Stock Exchange. Gazprom became that company.

A major challenge that the experts at Horizon working in close collaboration with Gazprom had to address was the problem of non-payments by consumers for deliveries of gas. In order to resolve this issue successfully, as it was formulated by Gazprom, Horizon's experts conducted a study of the special features of the Russian energy sector and formulated a proposal to the client to break out of the non-payment deadlock. Based on the analysis of Gazprom's financial and business operations in the domestic market, a set of recommendations was developed that was used to formulate proposals to establish Gazprom's single sales company: - OOO Mezhregiongaz. OOO Mezhregiongaz successfully completed the tasks that were identified for it at that time.

One of the most interesting projects carried out by Horizon was the elaboration of a restructuring scheme for Moldova's debts for gas supplied by Gazprom. As part of the solution, Horizon was able not only to find a way to arrange a debt-for-securities swap, but succeeded in enhancing the liquidity of the debt instruments by coming up with a proposal to convert debt of commercial consumers into Moldova's sovereign debt. An added value of this project was that in the process of its implementation Horizon developed a restructuring scheme for the debt owed by the consumers of the Russian debt, located in the territories of the CIS countries. In additional to that, as part of this project, the experts of the company found a way to ensure the circulation of securities of foreign countries in the territory of Russia.

Oil

Maritime Oil Transportation

Horizon conducted a project to study the economic advisability of exporting oil by sea from the Arctic fields. As a result, an economic model was developed that made a convincing case for the use of sea-going tankers for this purpose. The experts of the company that commissioned the study (Gazflot) came to the conclusion that the speed of implementation and the quality of the project would facilitate putting the production of Arctic oil into a practical mode.

Investments into Exploration and Production

Horizon acts as an investment consultant to OAO Vostokgazprom (OAO Gazprom's affiliate company) on issues of raising investment funds for the development of the Pudinskaya group of oil and gas fields (Tomsk Region). As part of the ongoing consulting project, a business plan to develop the fields has been developed, a financing scheme has been elaborated and agreed in collaboration with the client.

Power Industry

The power industry emerges as a natural second area of expertise in which the company provides its services. Horizon was instrumental in developing macroeconomic schemes for improving cooperation between OAO Gazprom and RAO UES. In addition to that, the experience gained was put to practical use at one specific facility: Pskov Hydroelectric Power Station. Restructuring the power station's debt to Gazprom made it possible to improve the financial health of the company and to establish on its basis an independent generating company with a great potential for growth of its production capacity and a prospect of gaining access to the international power generation market.

Gas Turbine Power Engineering Industry

Horizon acted as an investment consultant to the scientific research and production company OAO Saturn, a leading Russian designer and producer of gas turbine engines and power generation equipment, as part of a project to raise financing for the program of the company's technological modernization by tapping into the international financial markets. As a result of the effort, OAO Saturn and the Japanese company Sumitomo Corporation signed an agreement on a corporate credit program to modernize OAO Saturn facilities for a total amount of USD 60 million to be provided over 2003-2008. In the framework of this agreement, contracts have already been signed totaling over USD 20 million to supply equipment and technologies to the company.

Information Technologies and the Use of Outer Space

Horizon engaged in an exercise to restructure the business operations of KIA Systems. Kia Systems is a developer of algorithms and software products in the area of aerodynamics, navigation and information support for spaceship flights. Kia Systems is a participant in a unique project entitled Solar Sail.